Rollover IRA Question (x-post)

[otnemem]

If we're talking Lodi, NJ, I think I got on line six months ago and am still waiting.

[otnemem]

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I've owned one for more than three years, the other for over a year...

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You will only pay 15% cap gains tax on the profit, which isn't going to be much on a $4k total stock sale. If $1000 was profit, you'd only pay $150 to free up the $4k to put into the IRA. Looks good.

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Thanks, good advice. I guess I should probably see a tax prof. anyway, though. I forgot to take into account that I did have access to an employer 401k for six months, so I'm not sure how that affects my maximum contribution...

[bdf]

If you sell stock to contribute to your IRA, realize two choices you are making...

(1) You are trading current capital gains taxation (15%) for future income taxation (>15% probably)...no matter when you withdraw the money, early or at retirement

(2) You are choosing to put free and clear money in an account which incur a 10% penalty (plus income taxation) if you need to take it out before age 59.5

Perhaps a Roth IRA is better? Or just doing nothing...